Circle, BitGo, Coinbase, Paxos Seek US Banking Licenses

Prominent digital currency firms including Circle, Coinbase, BitGo, and Paxos are gearing up to seek banking licenses in the United States.

As reported by the Wall Street Journal on April 21, 2025, these crypto firms are poised to take advantage of the current US government’s favorable attitude towards cryptocurrencies.

BREAKING: #BITCOIN AND CRYPTOS SUCH AS COINBASE, CIRCLE, BITGO, AND PAXOS ARE ALL APPLYING FOR BANKING LICENSES IN THE US

THIS IS A GAME-CHANGER pic.twitter.com/CiZdHNmZOc

— The Bitcoin Historian (@pete_rizzo_) April 21, 2025

The firms are currently exploring various categories of banking licenses, which primarily hinge on their unique business models. While some are pursuing national trust or industrial bank charters that would provide them with functionalities akin to those of conventional banks, others are targeting more niche licenses aimed mainly at enabling stablecoin issuance and custody solutions.

“This signifies a natural progression for the crypto sector,” states digital currency analyst Sarah Johnson. “As these platforms develop and aim to cater to a wider clientele, banking licenses offer the necessary regulatory structure and consumer protections needed to function efficiently within the current financial landscape.”

So, who foresaw this? Both the CEO of Sygnum Bank and the President of Ripple anticipated that crypto firms would seek banking licenses sooner or later. They also projected that US banks would ultimately vie to provide crypto services.

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Deputy Group CEO Sygnum Bank Remarks, “There is no longer anyone to fear”

Discussing recent regulatory developments that enable US banks to more broadly engage with crypto offerings, Thomas Eichenberger, CSO and deputy Group CEO of Sygnum Bank, mentioned his anticipation of intense competition among US banks vying for crypto clients.

Eichenberger noted, “I believe we will continue to experience a period of uncertainty until the regulatory landscape in the US is clearly defined.”

“It’s evident that US banks are gearing up to offer crypto custody and crypto spot trading services very soon,” he added.

Eichenberger anticipates that most, if not all, US banks will actively seek to engage with crypto markets.

“I foresee not only a transition among US banks interested in offering these services and entering the trading market, but also large international banks headquartered outside the US that operate in the country. Many of them may have previously held back due to fears of regulatory scrutiny but now might feel that the global regulatory environment no longer poses a threat. Hence, I expect several large international banks to roll out services this year,” Eichenberger explained.

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“Game On In the US,” States Ripple President: Talks About Progress Of Crypto Legislation

When discussing regulatory clarity in the US this year, Ripple President Monica Long recently stated, “I believe we are finding a suitable equilibrium globally. There seems to be a healthy tension spot where we need to establish some rules and implement them to identify and address any issues that may arise.”

Reflecting on the status of crypto bills in the US, Long mentioned, “In terms of crypto legislation, it appears to be making significant progress. I understand there are also infrastructure bills relating to the trading market underway, and they seem to be advancing well. Additionally, it’s significant that the US, the world’s largest economy and capital crypto market, has become actively involved.”

According to her, Ripple experienced a swift business uptick shortly after the election, “where the receptiveness from US banks shifted suddenly.”

“The increase in banks means a broader distribution,” Long commented. “Another major change is the removal of SAB 121, the accounting bulletin that basically inhibited banks from holding crypto on their balance sheets. We are certainly witnessing greater interest in custody services as well.”

“So, the game is on in the US,” Long asserted confidently.

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The article Circle, BitGo, Coinbase, Paxos Seek US Banking Licenses was first published on 99Bitcoins.